Essay on The Unprecedented Growth of Lenovo over the Last Few Years

Submitted By ltle4
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Pro and cons: The first challenge, as noted above, is the perception that the acquisition would never work. The attempt to diversify the company involved leadership, strategy and cultural issues. The second challenge is that no Chinese company has ever built a global brand and “in our attempt to do so, more need to learn about us. The third problem,” Shafer reported, “is that not everyone is rooting for Lenovo, as some do not like the fact that a non-U.S. company is potentially going to take the lead in a traditionally U.S. dominated industry.” The fact is that Lenovo has just ignited a U.S. manufacturing program with 115 new jobs in North Carolina. With the aim of showing that China can do globalization right, Shafer suggested that one solution “may be to present ourselves as a next-generation enterprise.” He pointed out that Lenovo truly has a global leadership team, and while some top positions are Chinese, there is a range of nationalities; there is no attempt to force one culture on everyone else. That said, “China is our best hand with the media, as everyone is interested in things coming out of China.”

Issues:
The first was the use of a master brand, as exemplified in the IT space by HP, Intel, and Microsoft. A master brand strategy would focus almost all marketing resources on building the Lenovo brand worldwide. A major issue here was what to do about ThinkPad, which was considered a great sub-brand that Lenovo was reluctant to lose.
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